THE 2019 FEDERAL BUDGET: NOT WHAT WE WERE EXPECTING

  The federal government released their budget yesterday and honestly, we are shaking our heads. In the continuing saga of our nation’s housing discussion is the announcement of the First-Time Home Buyer Incentive Plan. Under the direction of the Canada Mortgage and Housing Corporation (CMHC), $1.25 billion is going to be used over three years to help first-time home buyers through a shared equity mortgage. First-time home buyers contribute the minimum five per cent down payment while the government will also contribute up to 10 per cent making the total mortgage amount less. Here is the example from the Budget…

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PRE QUALIFY FOR A MORTGAGE IN 60 SECONDS: BUYER BEWARE

Pre-qualifying

With the recent regulation changes in Canada, being approved for a mortgage has become a little more difficult than to pre qualify for a mortgage in 60 seconds. So why are we receiving contradictory information about how quick and easy getting a mortgage can be? Transparency, as we all know, is not a word that would be dominantly used to characterize the banking world, and in many other industries unfortunately.   We thought it was time to unveil some of the misleading interpretation that might have been adopted due to recent promotional content within our industry. Technology is evolving with…

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Top 5 Tips for First-Time Homebuyers

First-time homebuyers

Shopping for first-time homebuyers can be overwhelming if you don’t know where to start! Here are the top 5 tips for the first-time homebuyers: Build your team One of the best decisions to make in the early stages of preparing to buy a home is to start building yourself a team of trusted professionals. First, contact a Mortgage Broker who can help you with your long-term financial goals and from there you will want to find a realtor, lawyer and home inspector. Determine what you can afford It is financially savvy to first talk to a professional Mortgage Broker and…

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Why do Lenders ask for Employment letters?

employment letters

Why do Lenders ask for Employment letters? Checking for employment letters might seem like just one more piece of paper, but it’s important.  It’s due diligence.  And it works on your behalf. A borrower will provide employment letters if requested when applying for a mortgage.  You will also need a current pay stub dated within 60 days. The mortgage broker informs the borrower for additional income documents.  A lender requests the most recent 2 years Notice of Assessments or T1 Generals (tax return) or T4s certainly if overtime or bonus income is used to qualify. Employment letters should provide the…

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6 Mortgage terms Homebuyers should know

6 Mortgage Terms Every Homebuyer should know

Mortgage terms can be daunting for a homebuyer . Understanding these 6 mortgage terms homebuyers should will be helpful when you consider buying your first home! Here are the 6 Mortgage Terms: High-ratio mortgage A Homebuyer that purchase a home with a downpayment of less than 20% will have a high-ratio mortgage. All high-ratio mortgages are covered by mortgage loan insurance also known as mortgage insurance. The three mortgage default insurers in Canada are CMHC, Genworth and Canada Guaranty. Low-ratio mortgage Also known as a conventional mortgage, a low-ratio mortgage is one where the homebuyer has made…

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3 Quick Tips for Making an Offer on a Home

Making an Offer on a Home? Ideal homes often receive offers within days of being listed.  A buyer can increase their chances of securing their ideal home by being prepared! 3 Quick Tips for Making an offer on a Home: 1) Visit a Mortgage Broker Sit down with a Mortgage Broker and find out what you qualify for. It isn’t just about getting preapproved with a great rate.  It is about being prepared for when you do put an offer in. Know what you qualify for, know roughly what your payments will be and what costs are associated with purchasing…

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New Rules Limit First Time Homebuyers

Last week  (Oct. 2016),  the Federal government announced tighter mortgage rules that will affect home buyers, especially First Time Homebuyers. The tightened mortgage lending rules will limit the amount many Canadians can borrow to help ensure that when interest rates rise, they’ll still be able to make their payments. These new rules take effect Oct 17, 2016 Under the new rules, there is a stress test for all home buyers that are putting less than 20% down. The stress test is where borrowers must qualify for their mortgage using a higher interest rate than they will actually be paying on their mortgage. Currently the…

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Types of Insurance when buying a home

Home

4 Types of Insurance Related to your home MORTGAGE DEFAULT INSURANCE is an added premium into your home mortgage. Mortgage default insurance is required for those with a High-Ratio mortgage (less than 20% down) or borrowers with higher risk. This policy is in place to protect lenders from risk of borrower default. The 3 mortgage default insurers in Canada are CMHC, Genworth & Canada Guaranty. You purchased a big investment and you are going to want to insure the building & contents with FIRE & HOME INSURANCE.  Fire insurance policies pay out the mortgage lender if the house burns down. Mortgages won’t fund…

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